Charles Ocici, the executive director for Enterprise Uganda has advised the young entrepreneurs to always postpone some projects in their businesses whenever economic factors like inflation and the exchange rate become unfavorable.
Ocici was speaking to The Independent in an exclusive interview in Kampala on Dec. 14. He said: "Small and medium enterprises are found of acquiring loan facilities in times of economic problems instead of watching their costs. It is better to improve efficiency in business instead of launching new projects which you can't handle," he said.
Statistics has it that every year over 10,000 people start business, however, 40% fail within one year and 80% within five years.
The Small and Medium Scale Enterprises (SME) segment is one of the fastest growing sectors in the East Africa's third largest economy. The challenge, therefore, is to increase their survival rate. Other analysts say tips like being a visionary person, separating yourself from the business and Seeking knowledge and information from successful businesses are key to developing any business venture.
Ocici called on government to engage the population in productive sectors so they contribute to the growth of the economy. "The problem is every morning some people do gambling and just drink alcohol instead of doing productive work. That is not healthy for our economy," Ocici said.